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HomeMy WebLinkAbout2024-04 EDARBR291-386-958337.v1 Commissioner Lawrence-Anderson introduced the following resolution and moved its adoption: EDA RESOLUTION NO. 2024-03 DESIGNATING A CERTAIN BUILDING AS STRUCTURALLY SUBSTANDARD (FORMER TARGET PROPERTY) WHEREAS, under Minnesota Statutes, Section 469.174, Subd. 10(d), the Economic Development Authority of the City of Brooklyn Center, Minnesota (“EDA”) is authorized to deem parcels as occupied by structurally substandard buildings despite prior demolition or removal of the building subject to certain terms and conditions as described in this resolution; and WHEREAS, the EDA intends to cause demolition of a building located on certain property in the EDA identified in Exhibit A attached hereto (collectively, the “Designated Property”), and may in the future include the Designated Property in one or more redevelopment tax increment financing district as defined in Minnesota Statutes, Sections 469.174, Subd. 10. NOW THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Economic Development Authority of the City of Brooklyn Center, Minnesota (“Board”) as follows: 1. The EDA has received from LHB, Inc. the “TIF Analysis Findings for 6100 Shingle Creek Parkway,” dated September 8, 2023 (the “Inspection Report”), finding that, based on an inspection of the building located on the Designated Property, the sole building located thereon was determined to be substandard under the definition set forth in the Minnesota Statutes, Section 469.174, Subd. 10 (the “Substandard Building”). 2. Based on the Inspection Report and other information available to the Board, the Board finds that: (a) the building located on the Designated Property is structurally substandard within the meaning of Minnesota Statutes, Section 469.174, Subd. 10(b), since it contains defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance; (b) that the building located on the Designated Property is not in compliance with the building code applicable to new buildings and could not be modified to satisfy the building code at a cost of less than 15% of the cost of constructing a new structure of the same square footage and type on the Designated Property; and (c) more than 15% of the area of each of the tax parcels included in the Designated Property contains buildings, streets, utilities, paved or gravel parking lots, or similar structures. The reasons and supporting facts for this determination are included in, and the Board has relied on the finding set forth in, the Inspection Report. 3. After the date of approval of this resolution, the Substandard Building may be demolished or removed by the EDA, or such demolition or removal may be financed by the EDA, or may be undertaken by a developer under a demolition and development agreement between the developer and the EDA. BR291-386-958337.v1 4. After the demolition and removal of the Substandard Building on the Designated Property the EDA intends to include the Designated Property in one or more redevelopment tax increment financing districts (a “TIF District”) pursuant to Minnesota Statutes, Sections 469.174 to 469.1794, as amended (the “TIF Act”), and to file the request for certification of such district with the Hennepin County auditor within 3 years after the date the Substandard Building is demolished. 5. Upon filing the request for certification of a new TIF District, the EDA will notify the Hennepin County auditor that the original tax capacity of the Designated Property must be adjusted to reflect the greater of (a) the current net tax capacity of the Designated Property, or (b) the estimated market value of the Designated Property for the year in which the Substandard Building was demolished or removed, but applying class rates for the current year, all in accordance with Section 469.174, Subd. 10(d) of the TIF Act. 6. EDA staff and consultants are authorized to take any actions necessary to carry out the intent of this resolution. 7. The EDA authorizes expenditure of available tax increments and other available funds, in an aggregate amount not to exceed $750,000 to pay the costs of such demolition or removal, administrative costs associated with the establishment of the TIF District, including without limitation the preparation of the Inspection Report, legal fees, and the fees of the EDA’s tax increment financing consultant, and certain other costs incurred in connection with the proposed development of the TIF District in an amount to be set forth in writing by the City’s Finance Director (the “Costs Advances”) on a temporary basis from the EDA’s General Fund or any other fund from which such advances, from time to time, may be legally made (the “Fund”) as an interfund loan pursuant to Minnesota Statutes, Section 469.178, Subd. 7. The terms of the interfund loan, including the principal amount, interest to accrue thereon and maturity date shall be as the Finance Director may specify in writing; provided that interest shall accrue at a rate which is not greater than the greater of the rates specified under Sections 270C.40 or 549.09. June 24, 2024 Date President ATTEST: Assistant City Manager/City Clerk The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Jerzak and upon vote being taken thereon, the following voted in favor thereof: Graves, Jerzak, Kragness, Lawrence-Anderson and the following voted against the same: none whereupon said resolution was declared duly passed and adopted. BR291-386-958337.v1 EXHIBIT A DESIGNATED PROPERTIES The Designated Property consists of the located in the City at or near 6100 Shingle Creek Parkway consisting of PID 35-119-21-43-0009 on which the former Target store was located